Disability Savings Plans

Registered Disability Savings Plans

A Registered Disability Savings Plan (RDSP) is designed to help parents and others save for the long-term financial security of persons with severe or prolonged disabilities who are eligible for the Disability Tax Credit. Contributions to an RDSP are not tax deductible; however investment earnings grow tax free. In addition, there is the opportunity for contributions to qualify for payments from the Canada Disability Savings Grant (CDSG) program. Lower income families may also qualify for payments from the Canada Disability Savings Bond (CDSB) program without having to make a contribution to an RDSP. Earnings withdrawn under the disability assistance payment are taxable in the hands of the beneficiary.

While RDSPs are not available at BMO Nesbitt Burns, we would be pleased to assist you
with a plan through BMO Bank of Montreal or BMO Guardian Funds.